Scarcity and Choice Flashcards
1
Q
What is economics
A
is the study of how people, businesses and governments who have limited resources
2
Q
Rational choices
A
Individuals, businesses and governments make rational choices as they may have scarce (limited) resources.
3
Q
Factors of production
A
The Factors of Production are:
Land
Labour
Capital
Enterprise
4
Q
What’s a need and want
A
A need us something test is essential in order for you to servive a want is something you don’t need but would like to have
5
Q
Opportunity cost
A
Is the item you choose not to buy in order to buy another item
6
Q
Financial cost
A
Is the cost of the item you choose to buy
7
Q
Scarces resources
A
Is have a limited amount of resources available
